By Elishya Perera
LONDON (CU)_The United Kingdom is expected to announce an enhanced trade deal with Canada, after the two nations ratified an agreement last week, the British Trade Secretary has revealed.
During a virtual event organised by the Conservative Friends of Australia, Trade Secretary Liz Truss said the government is about to announce that London has committed to “an enhanced trade agreement” with Ottawa.
She said that the UK is working “very closely” with “like-minded partners” on international trade, adding that London is currently negotiating deals with the United States and New Zealand as well.
“We’re currently also negotiating with New Zealand. I’ve just had a call today with the US trade representative about further discussions about the US trade deal, so we are working with all of those partners on enhanced trade deals,” Truss said.
The UK and Canada ratified the “UK-Canada trade continuity agreement” on Friday (19 March), and according to a statement issued by the Department for International Trade, the two countries agreed to a Memorandum of Understanding which would ensure exporters would continue to benefit from preferential tariff rates until the deal is brought into force next month.
Total trade between the two countries amounted to £22.4bn in 2019, and the deal agreed would save an estimated £42 million tariff burden on UK exports, particularly automotive, food and beverage exports. Moreover, British consumers will continue to benefit from zero tariffs on Canadian maple syrup, biscuits and salmon.
“We have an exciting year ahead working with Canada to advance our shared priorities for free and fair trade and I look forward to building further momentum through our G7 Presidency this year,” Truss said.
“Later this year, we will take our trading relationship to new heights by starting negotiations on a new trade deal that will help us set the bar for 21st Century trade, bringing jobs opportunity, and prosperity for our people,” she added.
So far, Britain has rolled over post-Brexit trade deals with 63 countries which it previously traded with under European Union agreements. The first trade agreement signed by the UK that diverted from an existing EU deal was the one with Japan in October last year. Meanwhile, deals with Canada, Mexico Albania and Jordan are yet to come into force.
